CFE-Fraud-Prevention-and-Deterrence Practice Exam Questions with Answers Certified Fraud Examiner - Fraud Prevention and Deterrence Exam Certification

Rodrigo. a CFE. uncovered several material Internal control deficiencies unrelated to the Kickback scheme he was Investigating. In his final report to management. Rodrigo included information about the deficiencies even though they were unrelated to the situation he was hired to investigate.

Vivian, a CFE, accepted an assignment to conduct a fraud examination within a manufacturing company. Because she was in a hurry to complete the investigation, she overlooked key items of evidence and ended up failing to uncover a major fraud scheme.

Tom, a CFE, was hired by a client to conduct a fraud examination but found nothing amiss. A year later, he received a court order to provide the client's file to the ordering court. Tom complied with the court order, even though he did not have the client's authorization to do so.

All of the above are violations.

True

False

Confront Bridgette about the disagreements and discuss how they increase the department's risk of fraud.

Include her disagreements with Bridgette as a factor when assessing the risk of fraud in the accounts receivable department.

Automatically designate the accounts receivable department as a high-risk area.

Have someone else perform the fraud risk assessment work related to the accounts receivable department's activities.

Fraudulent customer payments

Anti-competitive practices

Insider trading

Conflicts of interest

XYZ only needs to undertake due diligence procedures if ABC conducts business in countries with known corruption risks.

XYZ does not need to take any specific procedures to verify ABC's identity before accepting the transaction

XYZ should examine ABC's net worth as part of deciding whether to allow the purchase on credit.

XYZ should perform the same level of due diligence as it would for any other customer to avoid claims of discrimination

The continued pressures of a culture that rewards affluence and success

The economy's increased reliance on credit

The increased constraints of the regulatory environment for businesses

The increased opportunity for wrongdoing as a result of advancing information technologies

Proactively identifying fraud risks

Limiting the damage caused by fraud occurrences

Punishing fraud perpetrators

All of the above

XYZ must comply with the various laws and regulations in the countries in which it operates

XYZ is subject to the Universal Corporate Governance Act because it is a publicly traded corporation.

XYZ is required to comply with G20'OECD Principles of Corporate Governance.

XYZ is not required to comply with any corporate governance requirements because it operates in multiple jurisdictions

True

False

Internal audit

Confession

Tips

External audit

A salesman offering bribes to secure a contract

An accounting clerk forging company checks to herself

A doctor conspiring with patients to Tile false health care insurance claims

Management of several construction companies engaging In bid rigging

True

False

Rewards are given to employees who challenge the status quo

Management encourages employee loyalty through social functions

Management separates employee performance goals from company performance goals

All of the above

Susannah should confront management with her audit findings and try to get a confession.

Susannah should Immediately report her findings to the secunties regulators

Susannah should report her findings to the audit committee of the board of directors.

Susannah should not disclose her findings to any other parties due to client confidentiality.

The auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement

The auditors should assess the need to adjust the nature, timing, and extent of remaining audit procedures based on this evidence.

The auditors can ignore the misstatement because the omitted amount is less than the quantitative materiality threshold and therefore immaterial to the audit.

The auditors do not need to be concerned with this evidence, as asset misappropriation schemes are not considered relevant or material for external audit purposes.

True

False